S.A.C. Capital’s portfolio drops in value

S.A.C. Capital Advisors, the world's most expensive hedge fund manager, joined the majority of hedge funds that lost money in the first two weeks of August, posting a 6% drop in its multi-strategy fund, according to an investor. Investors estimated that less than three hedge funds in 20 made a profit in the first two weeks of the month, challenging claims that hedge funds can make money regardless of market conditions, according to a Financial News report. Greenwich, Conn.-based S.A.C. charges a performance fee of 50% on any gains and management fees of 3% a year on the $13 billion of assets that it runs. The company has generated a net investment return of 43% each year since its launch in 1992, investors said. Investors said that of the 392 hedge funds that had reported results in the first two weeks of August, only 56 had made money. The investible hedge fund index published by New York-based MSCI Inc. fell on 13 of the first 15 business days of the month, recording a loss of 3.36% as of Aug. 21.